BSES YAMUNA POWER LTD. Vs. TALUPULA ENGINEERING CO.

JUDGEMENT

(1.) The challenge in this petition under Sec. 34 of the Arbitration & Conciliation Act, 1996 ('Act' in short) is to the award dated December 26, 2006 passed by the learned Arbitral Tribunal ('Tribunal' in short) consisting of three Members, whereby the Tribunal allowed eight claims out of eleven claimed by the respondent with interest @ 12% p.a. and rejected the counterclaim of the petitioner herein.

(2.) On November 27, 2002 the respondent submitted its bid for the work of supply, erection and commissioning of 66KV 4 CKT tower line from 220KV South of Wazirabad Grid Station, 66KV to Shastri Park Grid Station. On December 20, 2002 the purchase order for supply of material and a work order for erection and commissioning respectively of the tower line for a lump -sum of Rs. 1,74,50,000/ - was placed on the respondent. The work was to be completed within a period of 3 months. It appears that an amendment was issued to the work order whereby the completion period was increased to 4 months.

(3.) It is not disputed that the responsibility to design the work was that of the petitioner. It is also noted from the award that after casting one foundation it was found that the design as specified would not suit the riverbed and the work was stopped by the petitioner. It is also noted that after four months the petitioner awarded a consultancy contract to Power Grid Corporation of India Ltd. (PGCIL) vide its work order dated April 28, 2003. The PGCIL took four months to finalize the design. In view of the changes in the design, the petitioner issued fresh amendment to the purchase order and work order on September 22, 2003 with a completion period of 20 days and October 15, 2003 respectively. On October 01, 2003 a communication was sent by the petitioner to the respondent to expedite the work. The respondent vide its letter dated October 01, 2003 had expressed its inability to complete the work by October 15, 2003 and had requested for completing the work by January, 2004. A further intimation was sent to the respondent on October 14, 2003 for completing the work. In fact, a meeting was proposed on October 03, 2003 for the following details: -